Aegis Vopak Terminals Limited — Q3 FY26

Aegis Vopak Terminals Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=_wI7-r8wUKg Published: 3 months ago

0:00 and gentlemen, good day and welcome to the AG Swack terminals limited Q3 and 9 months FY26 earnings conference call. As 0:08 8 seconds a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your Touchstone phone. Please 0:24 24 seconds note that this conference is being recorded. Before we begin the call, I would like to give a short disclaimer. 0:31 31 seconds This call may contain some forward-looking statements which are completely based on our beliefs and expectations as of today. The statements 0:40 40 seconds are not to guarantee a future performance and involve risk and uncertaintities. 0:46 46 seconds With this, I would now like to hand over the conference to Mr. Rajandara for his opening remarks. Thank you and over to you, sir. 0:56 56 seconds Okay. Thank you very much. Good afternoon everybody. Um I extend a warm welcome to all the participants in the 1:02 1 minute, 2 seconds Q3 FY26 financial results discussion. U my name is Raj Chandara. I'm the 1:09 1 minute, 9 seconds chairman and managing director of AG's BPAC terminal limited and I'm joined today by Mr. Murad Moladina uh the 1:16 1 minute, 16 seconds director uh of the company and the spy of the way of MUFG corporate markets. 1:23 1 minute, 23 seconds I hope everyone's had a chance to uh review our investor presentation which was uploaded on the exchanges and uh our company website and it gives me uh 1:32 1 minute, 32 seconds satisfaction to address all of you again this quarter following our successful listing in this year and uh I'd like to 1:39 1 minute, 39 seconds thank our um uh investors and stakeholders for their continued trust and confidence that you've placed in our 1:47 1 minute, 47 seconds long-term vision, our management team and in our strong operational So, Aegis Back Terminals Limited uh is 1:56 1 minute, 56 seconds today India's largest independent operator uh and owner and operator of tank storage terminals for uh LPG and 2:06 2 minutes, 6 seconds liquid products with strategically located access across six major ports on the coastline of India and seamless uh 2:15 2 minutes, 15 seconds multimodal connectivity through pipelines, road and rail. We are uniquely positioned at the heart of 2:23 2 minutes, 23 seconds India's energy and chemical uh logistics ecosystem. 2:29 2 minutes, 29 seconds Our joint venture heritage uh which is which combines the deep local expertise of Aegis Logistics Limited with the 2:37 2 minutes, 37 seconds global operating uh excellence of Royal Royal World continues to be a powerful differentiator. 2:45 2 minutes, 45 seconds Uh now this partnership enables us to deliver world-class standards of safety, sustainability and efficiency uh even as 2:55 2 minutes, 55 seconds India's energy demand uh accelerates uh at a at a good pace 3:02 3 minutes, 2 seconds and I'm pleased to report that we are making excellent progress on our long-term growth strategy uh which is being executed under project gati 3:11 3 minutes, 11 seconds gateway access to India GATI and this initiative is uh driving the expansion 3:17 3 minutes, 17 seconds of our storage footprint through uh it's improving our throughput efficiency and diversifying our portfolio. 3:26 3 minutes, 26 seconds These efforts are not only strengthening our leadership position in the market but laying the foundation for sustainable profitable growth in the years ahead. 3:36 3 minutes, 36 seconds Now I'm pleased to report that the new LPG terminals which were commissioned last year at Pipawa and Mangalore are now fully operational and contributing 3:44 3 minutes, 44 seconds to revenues from this quarter onwards and these uh uh these additions have already started driving incremental volumes and therefore profitability. 3:55 3 minutes, 55 seconds Before moving to the uh portwise business update, uh I'd just like to highlight one uh major strategic development from last year, the last 4:04 4 minutes, 4 seconds quarter sorry. uh AVTL has now completed the acquisition of a 75% uh stake in 4:12 4 minutes, 12 seconds Hindustan Aegis LPG Limited HPG which was acquired from uh our parent one of the one of the shareholders Aegis Gas 4:20 4 minutes, 20 seconds Private Limited uh and BPAC IndiaB resulting in Hindustan AIS LPG becoming 4:27 4 minutes, 27 seconds a uh subsidiary of now this acquisition brings 25,000 4:34 4 minutes, 34 seconds metric an additional 25,000 metric tons of LPG storage capacity at Holia marking ADTL's entry into the east coast market. 4:45 4 minutes, 45 seconds uh HLPG operates in leading terminal along with an attached botting plant and maintains an exclusive terminaling 4:52 4 minutes, 52 seconds agreement with HPCL which is valid until 2038 and this strengthens the long-term revenue 4:59 4 minutes, 59 seconds visibility and uh expands AVGL's footprint in a high potential way. 5:07 5 minutes, 7 seconds Now with that with those uh introductory comments can I I'll take you through the 5:13 5 minutes, 13 seconds uh 454 developments. Uh as stated Helvia port has a liquid storage capacity of 5:20 5 minutes, 20 seconds 226,9890 cubic meters with operations all operations running at a high capacity 5:28 5 minutes, 28 seconds utilization level which is driven in turn by the steady demand. to facilitate future growth in this area. uh we 5:36 5 minutes, 36 seconds required an additional 3 acres of land uh and uh you know for expanding our liquid uh activities there with the 5:44 5 minutes, 44 seconds integration of Hindustan ages uh LPG AVTL will establish a nationwide footprint of four uh or has established 5:53 5 minutes, 53 seconds uh not will has established nationwide footprint of four LPG terminals uh located at Pipa, Kla, Bangalore and 6:01 6 minutes, 1 second Haldia together offering a combined static capacity of 200 125,800 metric tons. 6:09 6 minutes, 9 seconds Uh coming to JNPT port, uh the current operational liquid capacity is 110,900 6:17 6 minutes, 17 seconds cubic m with uh improved uh average realizations driven by a strong product. 6:24 6 minutes, 24 seconds work is underway to add an additional 318,100 cubic m of liquid capacity and 77,26 6:34 6 minutes, 34 seconds metric tons of LPG capacity marking a significant expansion. 6:39 6 minutes, 39 seconds Uh alongside this uh construction of an there is a construction of an LPG bottling plant with an annual capacity 6:47 6 minutes, 47 seconds of 35,000 metric tons. Uh so that's also in progress. 6:52 6 minutes, 52 seconds The overall project which involves a capital expenditure of 1,675 crores is advancing well with the first 7:01 7 minutes, 1 second phase of the new liquid capacity uh scheduled to come online in Q1 of FY27. 7:08 7 minutes, 8 seconds And um in addition to this, the company is assessing the development of a 36,000 7:15 7 minutes, 15 seconds metric ton cryogenic gas tank uh to further en enhance its gas infrastructure on the west coast. 7:26 7 minutes, 26 seconds Uh turning to Kanda port, uh the Jamnagard looney pip LPG pipeline is nearing completion and is expected to be 7:34 7 minutes, 34 seconds operational within the next month. uh while the Kanda Gorakool LPG pipeline is uh scheduled to be connected by June uh 2026. This is our latest information. 7:45 7 minutes, 45 seconds The BLGC bur at uh the Kanda port began operations in the third quarter. uh very 7:52 7 minutes, 52 seconds significant development uh by the way and on the final day of of the year uh December 31st the first ever BLGC docked 8:00 8 minutes at Kard and now making it a VGC compliant uh facility and as a result of this we anticipate a 8:10 8 minutes, 10 seconds sharp increase in the volumes at KLA uh and followed by a further increase once the KGPL and JPL pipelines are 8:18 8 minutes, 18 seconds commissioned and alongside these developments Construction of a new uh TRL4 liquid 8:25 8 minutes, 25 seconds terminal uh with a 94,148 cubic meters capacity is progressing and is slated for commissioning next year. 8:38 8 minutes, 38 seconds Uh in further developments we have entered into a nonbinding memorandum of understanding with Larsson and Tubro to 8:46 8 minutes, 46 seconds jointly develop ammonia terminals at Kandla. Now this collaboration is designed to support L&T's upcoming green 8:54 8 minutes, 54 seconds ammonia facilities and um further strengthen ABTL's role in India's evolving green energy ecosystem. 9:04 9 minutes, 4 seconds Uh at this moment the MOU remains uh non-binding but discussions are progressing uh to finalize a sort of agreement. 9:16 9 minutes, 16 seconds At Kochi port uh our liquid capacity stands at 82,545 9:24 9 minutes, 24 seconds cubic meters which again is operating at a high uh capacity utilization rate. And in our earlier calls call we had um 9:32 9 minutes, 32 seconds outlined plans to develop an additional 60,000 cubic meters of liquid capacity on newly allotted land. And I'm pleased 9:39 9 minutes, 39 seconds to say that this development is now actually underway. This expansion will not only expand capacity to meet future 9:46 9 minutes, 46 seconds demand but will also um uh uh support the growing requirements of the whole of southern India and further reinforce uh 9:56 9 minutes, 56 seconds AVTL's presence among south along the west coast. Turning to uh PIPA port, the 10:03 10 minutes, 3 seconds cryogenic LPGV terminal with a capacity of 48,000 metric tons was commissioned in June 2025, taking the port's total LPG capacity to 70,800 metric tons. 10:16 10 minutes, 16 seconds The port has also undergone a an infrastructure upgrade to the existing jetty making it VLGC enabled uh and 10:24 10 minutes, 24 seconds capable of handling larger cargos uh while enhancing railbased evacuation of LPG. 10:32 10 minutes, 32 seconds Uh on top of that in addition to that sorry uh work on a new BGC compliant jetty is underway by the port and is 10:39 10 minutes, 39 seconds expected to be completed this calendar year and uh at the end of that period the port will have worldclass 10:48 10 minutes, 48 seconds infrastructure to handle LPG through VLGC's uh it will have cryogenic storage tank 10:55 10 minutes, 55 seconds it will have bottling plants and LPG rail gantry and 16 uh truck loading bays for efficient evacuation and it will 11:03 11 minutes, 3 seconds have the pipeline to central India. So you know uh a big development at POW. 11:10 11 minutes, 10 seconds The uh liquid terminal at POW continues to operate at a high utilization level 11:16 11 minutes, 16 seconds uh and uh we are under uh in the process of developing further uh infrastructure 11:23 11 minutes, 23 seconds in the liquid business there to cater to the uh to other large Indian and global corporate customers. 11:31 11 minutes, 31 seconds Uh we've uh in a in a very significant development uh I'm very proud to announce that we have entered into a 15-year 11:40 11 minutes, 40 seconds uh 15-year long-term take or pay agreement with a large conglomerate um whose name we're not uh disclosing at 11:48 11 minutes, 48 seconds this moment for handling their petroleum products at Pawa. 11:53 11 minutes, 53 seconds At this under this arrangement uh AVTL will uh manage over half a million 12:00 12 minutes metric tons uh annually starting at the end of next year providing strong volume visibility and reinforcing our position 12:09 12 minutes, 9 seconds as a reliable logistic partner for one of India's largest energy players. This agreement uh not only secures a stable 12:18 12 minutes, 18 seconds revenue stream but also strengthens our position on the west coast and uh we will provide uh more details once this arrangement begins uh operations. 12:30 12 minutes, 30 seconds In addition to that uh construction of India's first independent ammonia terminal with a static capacity of 36,000 metric tons is progressing well 12:39 12 minutes, 39 seconds and is expected to be completed before the first quarter of the next fiscal year. The project is backed by a 15-year 12:46 12 minutes, 46 seconds takeover with Hindustan Zinc to support its upcoming diammonium phosphate plant. 12:54 12 minutes, 54 seconds Now this uh uh positions ABTL to meet the growing domestic demand for ammonia and uh aligns in uh with also with 13:03 13 minutes, 3 seconds India's broader green hydrogen ambitions and we are currently in talks uh to introduce a strategic partner into this 13:12 13 minutes, 12 seconds asset to help us create upscale uh this segment of the business to the next level. 13:20 13 minutes, 20 seconds At Mango Port, the cryogenic LPG terminal with a capacity of 82,000 metric tonses was commissioned in June and the port has successfully received 13:29 13 minutes, 29 seconds its first LPG vessel last quarter. In addition, 75,000 cubic meters of liquid capacity that was added last year is 13:37 13 minutes, 37 seconds also revenue accretive contributing to stronger performance. 13:42 13 minutes, 42 seconds With additional land uh recently uh uh allotted at that site, uh we anticipate uh we are developing another 60,000 13:50 13 minutes, 50 seconds cubic meters of liquid capacity and this um upcoming expansion will further enhance the company's capabilities and reinforce its presence in that port. 14:03 14 minutes, 3 seconds Now um Aegis Bac terminals has also entered into a non-binding memor memorandum of understanding to invest in 14:12 14 minutes, 12 seconds the proposed ratheran port with a potential outlay uh project outlay of approximately 20,000 crores. This move 14:20 14 minutes, 20 seconds is part of a wider plan to establish operations at two new port sites. Now following the receipt of the necessary 14:28 14 minutes, 28 seconds approvals and allocation of land, construction of fresh liquid and gas handling facilities will begin uh which 14:36 14 minutes, 36 seconds will add quite significant scale uh to the company's network and the development development will broaden 14:44 14 minutes, 44 seconds both the geographic coverage and service offering while strengthening uh ADGL's standing as India's leading integrated energy infrastructure provider. 14:57 14 minutes, 57 seconds Now by next year our aggregate capital expenditure uh is projected to reach US 15:04 15 minutes, 4 seconds dollars 1.2 billion uh and in in in line with our um 15:11 15 minutes, 11 seconds long-term vision. We have charted a capex road map of approximately $5 billion to be achieved by 2030. Uh these 15:21 15 minutes, 21 seconds achievements will be financed through an a carefully balanced approach uh which will uh leverage internal approvals alongside with a disciplined use of 15:29 15 minutes, 29 seconds debt. Uh our financial strategy remains firmly importance with a commitment to 15:36 15 minutes, 36 seconds maintaining a debt gearing ratio of 0.6 times and ensuring that overall leverage uh does not exceed 3.5 times cubit. 15:48 15 minutes, 48 seconds Now, um I just take this opportunity to thank all our employees and partners and stakeholders for their continued support 15:55 15 minutes, 55 seconds as we execute this road map and with a strong balance sheet, an expanding asset base and a growing demand for LTG, 16:02 16 minutes, 2 seconds ammonia and other liquid products, we are really well placed uh to develop consistent growth and strengthen our leadership in India's energy uh logistics sector. 16:14 16 minutes, 14 seconds So with that uh I'm going to hand over to Mr. from Murad Moladina uh to take you through the financial performance for this particular quarter. 16:22 16 minutes, 22 seconds Thank you Rasaraj. Hello everyone. 16:25 16 minutes, 25 seconds Starting with our 9 months uh performance revenue from operations for 9th month uh for FY26 16:32 16 minutes, 32 seconds increased by 18.3% yearonear totaling to rupees 549.1 16:39 16 minutes, 39 seconds crores. Revenue from liquid terminaling was 319.4 cr up 26.6%. 6% yearonear 16:47 16 minutes, 47 seconds while revenue from gas terminating division reached 229.7 crores an increase of 8.4% yearonear cumulative 16:57 16 minutes, 57 seconds gas throughput as of 9 month FI26 crossed last year's throughput of 1.89 17:03 17 minutes, 3 seconds million metric tons operating for the 9 months rose by 18.1% yearonear to 403.2 17:12 17 minutes, 12 seconds 2 crores and profit growth was particularly strong up by 90% yearonear 17:20 17 minutes, 20 seconds to 163.2 cr. Moving to the third quarter of FI26 revenue from operations rose by 17:27 17 minutes, 27 seconds 22.3% yearonear uh reaching 197.5 crores. Revenue from liquid terminaling segment stood at 17:35 17 minutes, 35 seconds 116.5 cr uh reflecting a year-on-year increase of 37%. 17:41 17 minutes, 41 seconds This growth was primarily driven by higher volume supported by capacity additions and improved product mix. 17:48 17 minutes, 48 seconds Revenue from gas terminal in division came at 81 crores with an increase of 6% and gas support was 67 million metric 17:58 17 minutes, 58 seconds tons. Operating ITA for Q3 FI26 grew by 23% yearonear reaching 18:07 18 minutes, 7 seconds 145.9 cr while profit surged by 62.7% yearon year to INR 61.5 cr. Overall, the 18:17 18 minutes, 17 seconds company's financial position remains solid, underpined by low debt, strong cash flow, and a resilient balance 18:25 18 minutes, 25 seconds sheet, which has been confirmed by the rating agency, upgrading our group credit rating of double A to positive outlook from stable outlook. Thank you. 18:35 18 minutes, 35 seconds I will request the moderator to open the floor for question and answer session. Thank you. 18:42 18 minutes, 42 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 18:50 18 minutes, 50 seconds telephones. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 18:58 18 minutes, 58 seconds question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 19:05 19 minutes, 5 seconds The first question is from the line of Yash Nandwani from IFL Capital. Please go ahead. 19:11 19 minutes, 11 seconds Uh thank you for the opportunity. Uh so my first question is on the liquid uh terminal realization. So we have seen a 19:19 19 minutes, 19 seconds significant improvement in the blended realization in the liquid segment. Just wanted to understand is it all related to product mix improvement or also a 19:26 19 minutes, 26 seconds function of improved turnaround or is there any take or pay in that would and would it be reasonable to assume same realizations going forward? 19:37 19 minutes, 37 seconds Uh yes uh this is not of on account of any take pay. uh this is on account of better product mix and uh increased uh 19:46 19 minutes, 46 seconds realization rate uh especially so uh from our J&P terminal which has now stabilized operations and we are in a 19:54 19 minutes, 54 seconds position to improve the product mix and increase the realization which has uh taken uh the overall average realization 20:02 20 minutes, 2 seconds up. This is expected to stay and further improve going forward. 20:08 20 minutes, 8 seconds Sure sir. And secondly sir uh same on the liquid side we are currently expanding at JNP and Kanda and we also 20:16 20 minutes, 16 seconds have lands at Kochi Mangalore and Hyundai. So when do expansion start there and what should we expect the liquid capacity to hit by let's say FI27 20:24 20 minutes, 24 seconds end uh so uh you know that we are expanding at Kandla around 100,000 and then uh we 20:33 20 minutes, 33 seconds are also expanding at Mangalore uh as well as Kochi as well as Halia which is 20:39 20 minutes, 39 seconds 60 60 that is around 200,000 further and we are al also doing uh 318,000 at uh 20:48 20 minutes, 48 seconds GMP PA we are at 1.7 million so I think we should be around 2.5 uh million plus 20:56 20 minutes, 56 seconds uh by FY27 end perfect okay then thank you 21:05 21 minutes, 5 seconds thank you the next question is from the line of Siddhhat Johan from BNK securities please go ahead 21:13 21 minutes, 13 seconds hi sir thank you for the opportunity so firstly on the 15-year takeover agreement which we signed at PIPA. I just wanted to understand is it with an 21:22 21 minutes, 22 seconds existing customer or it's a new customer which we have scouted. 21:26 21 minutes, 26 seconds Now we have already said the details we will uh we will uh share with with with the investors uh when when the when the 21:35 21 minutes, 35 seconds operations on on this account starts. So you will get the details uh in this calendar year. It is expected to start somewhere around October 2026. 21:49 21 minutes, 49 seconds Okay. All right. And secondly, you know, any reason for the weakness in LPG volume and the LPG a bit? What particularly happened in this quarter? 22:00 22 minutes Yes. So, uh, usually uh across the board quarter 1 is the least, quarter 2, quarter 3 are always similar and quarter 22:08 22 minutes, 8 seconds 4 is the surge. So, that is how this is happening. This is almost similar to to Q2 uh in terms of volumes handled. As 22:17 22 minutes, 17 seconds far as EBIT is concerned, as you know the revenues have reduced by 1 cr depreciation has increased by 1 cr and 22:24 22 minutes, 24 seconds therefore the EBIT to that extent uh is affected and some cost. So as the maturity of utilization will happen from 22:33 22 minutes, 33 seconds Q4 onwards, you will see a sudden change a step up. In fact, I think uh the 22:39 22 minutes, 39 seconds takeoff happens Q4 onwards. As far as gas volumes and gas embit and gas revenues are concerned, you will start 22:47 22 minutes, 47 seconds seeing stepup changes in all volumes, revenue, a bita from Q4 of FI26. 22:57 22 minutes, 57 seconds Understood. And you know lastly, can you share your capex plans for the next year? Uh do we have a road map on that? 23:06 23 minutes, 6 seconds So we we were uh after the IPO we were sitting on an uh assets uh commissioned uh if you strip out the rous uh which is 23:15 23 minutes, 15 seconds you know uh right of use uh fees in the fixed asset we are sitting on 5,000 cr 23:21 23 minutes, 21 seconds we have already bought alia asset at 1,000 cr we are executing 1,675 23:29 23 minutes, 29 seconds cr at j&pa we intend to spend uh around another 500 cr on liquid assets at 23:36 23 minutes, 36 seconds Kanda, Mangalangor, Kochi uh in fact more. So you see we are well geared to 23:42 23 minutes, 42 seconds reach uh uh a capex of 10,000 cr uh by the time uh we end FY uh 27. 23:52 23 minutes, 52 seconds All right. All right. Understood. We doubled the we double the topics. Yeah. Thank you. Understood. Understood. 23:58 23 minutes, 58 seconds Thanks a lot and all the best for the future. Thank you. 24:02 24 minutes, 2 seconds Thank you. A reminder to all participants, you may press star N1 to ask a question. The next question is 24:09 24 minutes, 9 seconds from the line of Neil Odal Sahu from JM Financial. Please go ahead. 24:15 24 minutes, 15 seconds Hi sir, good evening. Thank you for the opportunity. Uh first question is would you like to provide uh some outlook on 24:23 24 minutes, 23 seconds the volumes for FI26 given that Halia will be uh added for the first quarter? 24:31 24 minutes, 31 seconds Sorry, I did not get your uh question correctly. Uh can you help us with the volume outlook for FI26 24:39 24 minutes, 39 seconds uh with how they are being added like for the fourth quarter? Saying about Q4. 24:46 24 minutes, 46 seconds Yes, for Q4. 24:48 24 minutes, 48 seconds So Q4 uh typically Alia is at the utilization of 55% of throughput capacity. So accordingly 24:55 24 minutes, 55 seconds the volumes of Alia will be added that's number one to the volumes which already we did in Q3. Second VGC jetty at Tanda 25:04 25 minutes, 4 seconds has uh started operating in fact in January uh there were five VGC's which 25:11 25 minutes, 11 seconds came and unloaded caros. Uh of course uh January was a little bit uh affected by some uh incidents but uh that was not 25:20 25 minutes, 20 seconds really major in the Middle East. But we expect uh a volume increase uh uh a sign 25:27 25 minutes, 27 seconds quite a quite a volume increase uh at Kanda also for Q4. So yeah, we expect to do uh well in Q4 as terms of in in terms 25:36 25 minutes, 36 seconds of uh volume should should definitely cross a million and more. Uh we we'll have to see where we end but we are very 25:46 25 minutes, 46 seconds uh positive on uh the volume growth as far as Q4 is concerned. Yes. 25:53 25 minutes, 53 seconds Uh sure sir sir. Secondly u you have talked about exclusive agreement with HBCL at the Halia terminal. Uh can you 26:02 26 minutes, 2 seconds help us with like the annual volume run rate for the Har LPJ terminal and what is the quantum of this agreement with HPCL? 26:11 26 minutes, 11 seconds So HPCL agreement is not a takeway agreement. It is a exclusive agreement. 26:15 26 minutes, 15 seconds So HPCL has to bring the cargo on the east coast at our HLA terminal. the terminal has been constructed for their 26:23 26 minutes, 23 seconds use. Uh however uh uh you know as their market share grows so when we started 26:30 26 minutes, 30 seconds their volumes were 0.4 million now uh it has reached more than 1.5 million in 26:38 26 minutes, 38 seconds from from the time we started and it continues to grow. In addition they are also laying a pipeline from this Halvia 26:45 26 minutes, 45 seconds LPG terminal all the way to their Panagar bottling plant. So that as and when it get commissioned uh you will see 26:54 26 minutes, 54 seconds again a step up. Now we are very close we are getting very close to the capacity or throughput that we can do 27:01 27 minutes, 1 second there. We have already crossed 1.5 million. The capacity most we can do is 2.5 million. I think there will come a 27:10 27 minutes, 10 seconds time very soon when we we should get saturated uh at Haldya. That would open doors for us to look into expansion possibilities. 27:20 27 minutes, 20 seconds at that particular point of time. 27:23 27 minutes, 23 seconds Uh thank you sir. One last question from me. Uh can you help us with an update on KGPL and JLPL pipeline corrections to Kandra and paperwork? 27:32 27 minutes, 32 seconds Yeah surely Mr. Raj already spoke that we expect uh JLPL. So now uh the full swing work is on uh Janna pipeline from 27:42 27 minutes, 42 seconds our side. So everything is in place. We are doing the construction uh construction in a sense the last few 27:50 27 minutes, 50 seconds meters that are left to be connected. We expect by February end uh to be able to uh commission. As far as Kandla Gurapur 27:58 27 minutes, 58 seconds is concerned, I think the worst case scenario is June 26. It should happen before uh but I think by June we expect 28:06 28 minutes, 6 seconds uh it to be operationalized both at Kangla as well as at Pawa. Pipawa might be a little earlier because the manifold is right there in our premises. 28:18 28 minutes, 18 seconds Uh that's all from me. Thank you sir. 28:22 28 minutes, 22 seconds Thank you. The next question is from the line of Dr. Amit Bora from the homeopathic clinic. Please go ahead. 28:31 28 minutes, 31 seconds Good afternoon everyone. Good afternoon. 28:35 28 minutes, 35 seconds Yeah. Yeah sir. My question is regarding the uh does this recent EU signing agreement with uh India will that benefit anyways to our company? 28:46 28 minutes, 46 seconds Sorry, your voice is a little muffled. Can you repeat the question? 28:50 28 minutes, 50 seconds Yeah, the EU agreement uh yes uh I mean uh in that sense uh we are a we are a storage terminal keeper. uh so these uh 28:59 28 minutes, 59 seconds the the these agreements do not uh affect us directly but whatever benefits the customer will derive for example I 29:07 29 minutes, 7 seconds think speciality chemicals export uh now being uh the duty being reduced probably to zero as and when it is implemented 29:15 29 minutes, 15 seconds it's still some time away the agreements are not yet in uh operation they may take 6 9 months uh but I think it will 29:23 29 minutes, 23 seconds help because there will be more exports of speciality chemicals to Europe and uh both terminals would definitely be 29:32 29 minutes, 32 seconds required uh for for that rush. 29:38 29 minutes, 38 seconds Okay. And one more question sir about the rail gantry at Mangalore. Is it operational? 29:46 29 minutes, 46 seconds Rail gantry work has started. It will take 9 months. So probably by September 26 it will be operational. 29:54 29 minutes, 54 seconds Okay, that's it from my side. Thank you so much. Thank you. 29:58 29 minutes, 58 seconds Thank you. A reminder to all participants, you may press star N1 to ask a question. The next question is 30:06 30 minutes, 6 seconds from the line of Kub from Modify Investments. Please go ahead. Uh hi. 30:16 30 minutes, 16 seconds Yes. Hello. 30:17 30 minutes, 17 seconds Yes. Uh my first question would be a bookkeeping one. So just to check on the realizations of the liquid, can you please give me the capacity which we 30:25 30 minutes, 25 seconds were having for liquid in Q3 FI26 and what was the utilization level of that capacity? 30:31 30 minutes, 31 seconds Yes. So it's 1.7 million. So what you do is the Q3 number uh run rate if you want to see you multiply by 4 and you divide 30:40 30 minutes, 40 seconds by 1.7 million. So you'll get a yearly average rate realization. Uh occupancy has got no relevance here. uh because we 30:49 30 minutes, 49 seconds also sometimes uh hire out capacity without any relevance to the volume. But if you want to technically understand what is the occupancy then it is 77% 30:59 30 minutes, 59 seconds uh uh physical occupancy not revenue generating occupancy revenue generating occupancy always 31:07 31 minutes, 7 seconds close to 100%. So that is what uh it stands. 31:12 31 minutes, 12 seconds Okay understood. So the second question would be on that realization. So if I just look at the Q1, Q2 and Q3 numbers 31:19 31 minutes, 19 seconds in Q1 we had approximately 1290 per matri it reduced to 1200 now it is at 1210. So sir what can be the ballpark 31:26 31 minutes, 26 seconds number for the gas realizations which we can model in our projections yes that's around 1250 yeah 31:34 31 minutes, 34 seconds 1250 and so lastly on the throughut side uh so we are expecting kandra to come live in the next 6 months like the worst 31:42 31 minutes, 42 seconds case scenario which you have mentioned is June currently we are doing approximately 10 to 12x of our uh asset turn I mean the throughput turns so what 31:50 31 minutes, 50 seconds can be the number for that the throughput can how can it improve like it can go up 2025 or it's going to go more above that also. 31:58 31 minutes, 58 seconds Yes. So uh look uh the capacity of Kand Gorakpur pipeline is 8.25 million tons. Okay. 32:05 32 minutes, 5 seconds There are three points of uh uh input in the Kandakpur pipeline. One is Kandla 32:12 32 minutes, 12 seconds port where 5.75 million tons are uh uh uh marked year 32:18 32 minutes, 18 seconds mark 1.5 million from Pipawa and 1 million from Dah. So you know you can do 32:25 32 minutes, 25 seconds the math and then this all will not happen uh all at once. So it will take 32:32 32 minutes, 32 seconds probably 2 three years time to reach uh the full uh utilization of the pipeline. 32:37 32 minutes, 37 seconds There are 23 bottling plants currently operational which are connected uh to use the LPG pump from these three uh 32:45 32 minutes, 45 seconds source point and uh uh yes so it's a significant number. uh what will be our 32:52 32 minutes, 52 seconds share paw we are exclusively uh uh only us in Canada we share uh the 32:59 32 minutes, 59 seconds port with uh IOC and uh the head we are not there so you can then see I mean 33:06 33 minutes, 6 seconds let's let's see how much share we are able to gather uh from uh the throughput that takes place mind you the throughput 33:14 33 minutes, 14 seconds is going to be done by the national oil companies uh HPC BPC IOC and if you Look at uh Jamagaloni pipeline. Jamagani 33:23 33 minutes, 23 seconds pipeline I think currently has a capacity of 3.25 million tons which has now been approved to upgraded to to be 33:31 33 minutes, 31 seconds upgraded to double. Uh but that is of course going to take 2 3 years time. Uh currently this 3.25 also we would tap uh 33:40 33 minutes, 40 seconds as our customers would use our terminal to pump into Jangari from Kanda. So 33:47 33 minutes, 47 seconds yeah, we will let's see uh but it's going to be quite significant uptick in the throughput that we do at these 33:54 33 minutes, 54 seconds source points uh as far as jamalini connection and kandagram connection that we are able to do at both kanda and 34:03 34 minutes, 3 seconds pipawa. So it's it's going to be definitely uh of significance. 34:09 34 minutes, 9 seconds Uh completely understood. But do you want to give any number to it? Like currently we are doing 67 million. So if you analyze it, it's coming to 2.4 on a 34:17 34 minutes, 17 seconds capacity of 200 which is basically 12 times. So like what can be the ballpark figure for this to write? Can it go up to we can we do not give projections of 34:26 34 minutes, 26 seconds port because it depends on our customers but like I said it it will be quite uh significant uh in the sense in what we 34:33 34 minutes, 33 seconds have been doing and what will these two connections lead to. 34:38 34 minutes, 38 seconds Understood. And we should see a uptick starting from Q4 like Q4 would be the first. 34:44 34 minutes, 44 seconds You will see Q4 uh uh uptake on account of the VGCJ compliance uh that happened at Kanda as 34:53 34 minutes, 53 seconds well as partly on account of JPL connection probably by February end. 34:59 34 minutes, 59 seconds Yeah. So you will see some of it flowing into Q4. Okay. Thank you. Thank you so much sir. 35:06 35 minutes, 6 seconds Thank you. The next question is from the line of Siddhhat Chawan from BNK Securities. Please go ahead. 35:15 35 minutes, 15 seconds Hi Murra G. Thank you again for the opportunity on the GNKA terminal. I believe Uranchakan pipeline is the one 35:22 35 minutes, 22 seconds which is connected. Uh is it correct or there are other pipelines as well connected to the terminal? Uh the pipeline is Uran Chakan. You're you're 35:30 35 minutes, 30 seconds correct. Uh but our LG terminal is under construction. So we would be able to tap that once it commissions. Uh but yes, 35:38 35 minutes, 38 seconds you're right from uh uh JNBA we can hook into uh Kuran Chakan pipeline. Uh please 35:46 35 minutes, 46 seconds uh remember that we are already connected and hooked into Mumbai Chakan pipeline Mumbai Kuran Chakan pipeline from our Mumbai terminal. Now in 35:55 35 minutes, 55 seconds addition to that which is of course in our parent company Agistics Limited but in addition to that here in uh for our 36:03 36 minutes, 3 seconds upcoming terminal uh we would also hook into Puran Shakan pipeline from JNPa but then what is the capacity 36:12 36 minutes, 12 seconds utilization of that pipeline because uh I understand it's currently running at its optimum capacity. 36:19 36 minutes, 19 seconds uh again I repeat it's it's the the customers are going to be the same even if it is utilized at an optimal capacity 36:27 36 minutes, 27 seconds the customers using that pipeline would start storing at our place also if we are connected 36:35 36 minutes, 35 seconds uh are you getting the point so instead of terminal A they would move to terminal ADT 36:42 36 minutes, 42 seconds uh so there's no need for volumes to increase in uh uh chakan uh uranakan 36:49 36 minutes, 49 seconds pipeline. What we need is the customer to start storing at our place who's already using that they will start using 36:57 36 minutes, 57 seconds the uran pipeline from our connection rather than someone else's connection. 37:03 37 minutes, 3 seconds Okay. Because uh I was reading that the pipeline capacity is I think close to 1 million tons and peranom and uh we already have the Mumbai terminal and now 37:12 37 minutes, 12 seconds we are putting up a GNPD terminal with a capacity of I think 10,000 Yeah. So Mumbai Chaka uh from Mumbai 37:21 37 minutes, 21 seconds terminal it's around 350,000 tons out of that 1 million uh which is being pumped from Mumbai 37:30 37 minutes, 30 seconds right and then we have we are putting this 77,000 metric ton and uh I'm sure our throughput will be much more than this because 37:39 37 minutes, 39 seconds yeah yeah absolutely uh yeah I understand how we'll be able to evacuate the remaining uh capacity I do 37:48 37 minutes, 48 seconds not understand by rail by road and by this pipeline connection all three road I can evacuate 37:56 37 minutes, 56 seconds 3.5 million tons in a year okay in case of pipeline whatever we can 38:04 38 minutes, 4 seconds do let's say half a million or whatever and rail is again 1.5 to 2 million that 38:11 38 minutes, 11 seconds you can evacuate so you are in a position to evacuate 6 million with a combination of multimodal evacuation. 38:22 38 minutes, 22 seconds Okay. Okay. Understood. And you know and lastly on the on when you discuss about having a non-binding MOU at Vadwan port 38:30 38 minutes, 30 seconds and about investing 20,000 crores. So what are the projects you are envisaging in this figure? Is there what types of 38:37 38 minutes, 37 seconds projects are you discussing in this 20,000 cr investment? Just want to understand the range. Yeah, there there's no limit. Whatever the port uh 38:47 38 minutes, 47 seconds whatever makes commercial sense at that port uh because that's that's going to be also a a distribution model kind of a 38:54 38 minutes, 54 seconds port in and out. Then we would have liquid gas uh and many other products uh uh uh terminals even jetties. 39:05 39 minutes, 5 seconds So there there's a lot to do out there. 39:08 39 minutes, 8 seconds It's going to be one of the largest port in India probably three times the size of JNPa and located at west coast at the border 39:18 39 minutes, 18 seconds of Maharashtra Gujarat it's it's going to be an amazing uh opportunity. 39:24 39 minutes, 24 seconds No absolutely as you mentioned but you know if I if I look at investments in liquid terminal or in your gas terminals which is your forte the size is very 39:33 39 minutes, 33 seconds small versus this 20,000 cr amount. So I just want to understand what are the other projects which we might actually venture into at that. 39:40 39 minutes, 40 seconds So there are so many there are so many uh gases or products uh like LNG, ammonia, LPG, ethane there are many many 39:49 39 minutes, 49 seconds products which for which terminals uh will make sense in a port likewan. 39:58 39 minutes, 58 seconds Okay. And they are really of big big amount. 40:01 40 minutes, 1 second One LNG terminal would cost you maybe 8,000 crores. Oh, that's right. Oh, that's right. 40:09 40 minutes, 9 seconds 20,000 fall short. Don't worry. If at all we get the land and the permits to to do there. Uh there is a lot to do. 40:20 40 minutes, 20 seconds Absolutely. And again, thanks a lot for taking my question. Yeah. Thank you. Thank you. 40:26 40 minutes, 26 seconds Thank you. The next question is from the line of s Romesh an individual investor. Please go ahead. 40:34 40 minutes, 34 seconds Uh thank you very much for the call. So just to understand your business model and uh what is the kind of uh growth you 40:41 40 minutes, 41 seconds can deliver on revenue and evida from the existing capitalized assets? What is the headroom you have in terms of 40:50 40 minutes, 50 seconds additional volume? Any incremental you know upside in pricing? 40:56 40 minutes, 56 seconds Yes. So for in case of LPG if you look at uh let's say uh I have 15 uh 6 41:06 41 minutes, 6 seconds million and now we are added 2.5 million of alia. So we have around 18 million tons of troop capacity. 41:15 41 minutes, 15 seconds Okay for 9 months we have done 1.89. So that's how far we can go and how fast we 41:22 41 minutes, 22 seconds go is the key that is possible through multimmobile evacuation a worldclass uh 41:29 41 minutes, 29 seconds LPG infrastructure and bottling plants etc etc etc. So all our effort goes into 41:36 41 minutes, 36 seconds uh doing things which will quicken uh the the the utilization and uh the the 41:44 41 minutes, 44 seconds eeta that it throws is crazy. So that that is how LPG business is concerned. 41:49 41 minutes, 49 seconds As far as liquid is concerned, we follow demand. We don't let demand follow us. 41:53 41 minutes, 53 seconds So when you go and put up a liquid terminal, it's it's there fully utilized. What is the upside thereafter 42:01 42 minutes, 1 second in addition to the capacity that we keep adding is that you keep changing the product mix you get into more complex more high value uh products that you 42:10 42 minutes, 10 seconds store you get higher uh uh uh realization even with the same capacity 42:16 42 minutes, 16 seconds or you find products that move and move out fast. So your rate is per month rate 42:24 42 minutes, 24 seconds whereas if the product evacuates sooner than the 30-day period then you can get another set of products. So both of 42:31 42 minutes, 31 seconds these are the levers which provide you upside as far as liquid business is concerned in addition to the capacity 42:37 42 minutes, 37 seconds additions uh that you can do day in day out. Mind you these terminals a range of products are stored petroleum petrochemicals chemicals. 42:47 42 minutes, 47 seconds So there is flexibility of storing products, there is flexibility of handling trade, imports, exports, coastal movement. So you have a huge 42:55 42 minutes, 55 seconds flexibility and therefore uh it provides you an opportunity to keep changing and 43:01 43 minutes, 1 second keep increasing the realization. Uh uh yeah. 43:06 43 minutes, 6 seconds So in the gas terminals, what is the gas you're handling now? And uh what will be the gas? The gas that we are sorry. 43:16 43 minutes, 16 seconds Yeah. So what is the nature of gas you're handling now and what will be the gases you will be handling in future? 43:23 43 minutes, 23 seconds So we have cryogenic uh storage terminals to handle LPG though these terminals are propylene rated. So I can 43:32 43 minutes, 32 seconds handle a range of products there also to propylene ammonia LPG with some tweaks but we are currently only focused on 43:41 43 minutes, 41 seconds LPG. we are vertically integrated as a group uh in LPG business. So that gives us a very good lever uh to to get the 43:50 43 minutes, 50 seconds best out uh of of this product. So currently it's only LPG that we are focused on on all the cryogenic 43:58 43 minutes, 58 seconds terminals that we own and operate along the coastline of India. 44:02 44 minutes, 2 seconds Okay. So one last thought in terms of your realization how much of that what percentage of that is based on a tolling arrangement and what percentage of that 44:11 44 minutes, 11 seconds which gives you some kind of pricing power in terms of trading margins or you know stocking the product. How does it work? 44:18 44 minutes, 18 seconds We do not take title of products as far as liquid cargo is concerned. We only store for others. So there is no 44:25 44 minutes, 25 seconds question of uh uh storing and uh earning margins as far as liquid product is concerned. In case of Aegis WAP even in 44:33 44 minutes, 33 seconds gas we only store LPG we do not do any trading it's agis logistics parent which does distribution of LPG not there also 44:43 44 minutes, 43 seconds it's not any other liquid product so we we we we we are only a service provider uh infrastructure provider and it's only 44:51 44 minutes, 51 seconds to increase fee sort of what you say but it's called through port is based on the volume in and out of my terminal 44:59 44 minutes, 59 seconds so the uh way in which you fix prices is it based on a percentage of the value of the product or is based on your ROC 45:07 45 minutes, 7 seconds objective how do you work out the uh storage these are industry industry benchmark so we we follow uh the industry benchmark 45:15 45 minutes, 15 seconds and charge the same of course because as a as my parent is is the infrastructure developer we have a unique uh advantage 45:24 45 minutes, 24 seconds of getting the infrastructure in quickest time and cheapest so being an infrastructure business uh uh we we are 45:33 45 minutes, 33 seconds much more at an advantage than anyone else uh because it is our in-house infrastructure development uh which 45:40 45 minutes, 40 seconds gives us this uh uh this this benefit uh so that is where we score uh so the 45:47 45 minutes, 47 seconds ROC's and uh are are really huge and mind you these are very long life assets 45:54 45 minutes, 54 seconds 40 years of life yeah appreciate it thanks a lot and wish you all the Thank you. 46:01 46 minutes, 1 second Thank you. Due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir. 46:11 46 minutes, 11 seconds Well, thank you very much. Uh I think uh it's been a really busy uh 9 months uh and uh including you know acquisitions 46:20 46 minutes, 20 seconds and new projects and and so on. uh we look forward to continuing to inform all of you about the progress that the 46:27 46 minutes, 27 seconds company's making and um uh we will speak again I guess in uh in month of May uh when we'll have our final year end results. Thank you so much. 46:39 46 minutes, 39 seconds Thank you on behalf of Aegis Wack Terminals Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.